Skip to Content

Pebblebrook Hotel Trust PEB

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Even Though Pebblebrook Saw Negative Cash Flow in Q1, Hotel Demand Starting to Trend Upward

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

Vaccinations across the country have yet to hit a level that allows hotels to return to profitability, so no-moat Pebblebrook Hotel Trust saw another period of negative earnings in the first quarter. The decline was in line with our expectations, leading us to reaffirm our $26 fair value estimate. Occupancy remained low at 18.8% in the first quarter, well below the 56.7% the company recorded in the first quarter of 2020 and 75.4% in the first quarter of 2019. Rate growth held up well despite the low occupancy level, only falling 3.8% year over year and 4.6% compared with the 2019 level. Still, the large occupancy decline led to a 68.0% year-over-year decline in revenue per available room, which is in line with our estimate of a 69.3% decline. Pebblebrook's expense reductions were also in line with our expectations, at 53.9% compared with our estimate of 54.8%. As a result, the company saw a hotel EBITDA loss of $15.1 million and produced an adjusted funds from operations loss of $0.42 per share in the first quarter, in line with our estimate of a $0.45 loss.

Read Full Analysis

Company Profile

Business Description

Pebblebrook Hotel Trust currently owns upper-upscale and luxury hotels with 13,235 rooms across 53 hotels in the United States. Pebblebrook acquired LaSalle Hotel Properties, which owned 10,451 rooms across 41 U.S. hotels, in December 2018, the company current Pebblebrook CEO founded in 1998, though management has sold many of those hotels over the past few years. Pebblebrook's portfolio consists mostly of independent hotels with no brand affiliations, though the combined company does own and operate some hotels under Marriott, Starwood, InterContinental, Hilton, and Hyatt brands.

4747 Bethesda Avenue, Suite 1100
Bethesda, MD, 20814
T +1 240 507-1300
Sector Real Estate
Industry REIT - Hotel & Motel
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Hard Assets
Employees 53


Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.